Johannesburg Stock Exchange

Country
South Africa
Number of listed companies
365
Domestic market capitalization
1,278,577
SSE Partner Exchange

Yes

Requires ESG reporting as a listing rule

Yes

  • Requires (on an apply and explain basis) that listed companies annually report the extent to which they comply with the King Code. King IV includes sustainability reporting as well as integrated reporting. Source
  • JSE also has mandatory governance disclosure requirements beyond the principles of King.
Has written guidance on ESG reporting

Yes

  • The JSE has collaborated with the Institute of Directors in Southern Africa (IoDSA) assisting the King Committee on Corporate Governance Guidance to issue guidance notes on reporting against the King Code – see here.
  • The JSE is a member of the standing King Committee. King III and King IV are available online.
  • The JSE is also a founding member (and board member) of the Integrated Reporting Committee (IRC) of SA. Significant contributor to the development of guidance on integrated reporting as issued by the Integrated Reporting Committee of South Africa. It is a member of the working group which aims to put out relevant research and guidance in relation to integrated reporting. Please refer to http://integratedreportingsa.org/ for further details and access to the reports produced by the IRC.
  • From an investment tool perspective, the FTSE/JSE Responsible Investment (RI) index series was introduced in October 2015 and replaced the SRI Index that had been running since 2004. The methodology measures eligible companies ESG strategies and performance, thus also influencing the way companies should operate and provides a model for the kinds of ESG data companies should be disclosing. Source
Offers ESG related training

Yes

  • Mandatory directors training is offered for smaller companies intending to list on the alternative board Alt-X, in collaboration with the Institute of Directors. See here.
  • While specialised ESG training is still nascent, the JSE continues to explore training needs of companies. Our standard course on the listings requirements covers the King Code and its reporting elements. During 2016, the JSE launched a programme on corporate ethics. See here.
  • As of 2018, the JSE offers training for listed companies on their performance in the FTSE/JSE Responsible Investment Index which covers an analysis of the company’s performance and where the areas of strengths and weakness are.
  • Training on how to begin adopting sustainability into an exchange context is being offered to African exchanges from 2018.
  • An annual Responsible Investment / ESG Investor Briefing is run to enable investor engagement on ESG issues.

 

Has sustainability-related indices

Yes

  • The JSE has adopted the FTSE ESG Ratings process to create the FTSE/JSE Responsible Investment Index Series, launched on 12 October 2015. This replaced the SRI Index that had been running from 2004. The RI Index Series currently comprises two indices:
    • i. The FTSE/JSE Responsible Investment Index, a market-cap weighted index calculated on an end of day basis, comprising all eligible companies who achieve a FTSE ESG rating of 2.0 or above.
    • ii. The FTSE/JSE Responsible Investment Top 30 Index, an equally weighted tradable index calculated on a real time basis, comprising the Top 30 companies ranked by FTSE ESG Rating.
  • See more here. www.jse.co.za/responsible-investment
Has sustainability bond listing segment

Yes

  • Green Bond section of website
    As of 07/16 three green bonds were listed
    See here for the announcement of first green bond listing.
Has SME listing platform

Yes

Organizational model of stock exchange
  • Listed company for profit; demutualized in 2005 and listed in 2006
Regulatory model
Strong Exchange Self-Regulatory Organisation (SRO) Model
  • Because of the level of authority possessed by the exchange
  • The JSE is the frontline regulator for the exchange, setting and enforcing listing and membership requirements and trading rules. The Financial Services Board (FSB) supervises the JSE in the performance of its regulatory duties.
  • The regulatory landscape is set to change significantly in the future, as South Africa looks to implement a twin peaks model of oversight. Under the new system, prudential supervision will be transferred to the South African Reserve Bank (SARB) and market conduct regulation will be led by a bolstered FSB.
 
About the stock exchange
Location: Johannesburg, South Africa
  • The Johannesburg Stock Exchange (“JSE”) offers secure, efficient primary and secondary capital markets across a diverse range of securities, supported by our post-trade and regulatory services. We are the market of choice for local and international investors looking to gain exposure to the leading capital markets in South Africa and the broader African continent. The JSE is currently ranked the 17th largest stock exchange in the world by market capitalisation and the largest exchange in the African continent. The JSE was formed in 1887 during the first South African gold rush. Following the first legislation covering financial markets in 1947, the JSE joined the World Federation of Exchanges in 1963 and upgraded to an electronic trading system in the early 1990s. The bourse demutualised in 2005 and listed on its own exchange in 2006. In 2003, we launched an alternative exchange, AltX, for small and mid-sized listings, followed by the Yield X for interest rate and currency instruments. The JSE acquired the South African Futures Exchange (SAFEX) in 2001 and the Bond Exchange of South Africa (BESA) in 2009. Today we offer five financial markets namely Equities and Bonds as well as Financial, Commodity and Interest Rate Derivatives. Source
Ownership of Exchange (Shares >4% only) Share
Public Investment Corporation 10.6%
Investec Asset Management Pty Ltd 6.5%
Abax Investments (Pty) Ltd 6.0%
Somerset Capital Management, LLP 5.7%
Neuberger Berman LLC 5.1%